Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed rate loan rose to 4.08 percent from 4.03 percent the previous week. The benchmark rate topped its 3.93 percent level of a year ago.

The rate on 15-year home loans, a popular choice for people who are refinancing, jumped to 3.34 percent from 3.25 percent.

Long-term mortgage and interest rates have climbed in the four weeks since Trump’s surprise victory on Nov. 9 to become the country’s next president.

Bond investors are looking toward tax cuts and increased government spending to upgrade roads, bridges and airports under a Trump administration, which could fuel inflation. That would depress prices of long-term Treasury bonds because inflation would erode their value over time. When bond investors foresee rising inflation, they demand higher long-term yields and pay lower prices for bonds. Bond yields move opposite to prices and also influence long-term mortgage rates.

The yield on the 10-year Treasury bond stood at 2.38 percent Wednesday, the same as a week earlier and up from 1.87 percent on Election Day Nov. 8. It climbed to 2.45 percent Thursday morning, its highest level since July 2015.

More immediately, Federal Reserve policymakers are expected to raise the central bank’s benchmark rate at their Dec. 13-14 meeting for the first time in nearly a year. Fed Chair Janet Yellen recently told Congress that the case for a rate boost has “continued to strengthen.”

The effect of advancing mortgage rates could be seen in reduced activity by prospective homebuyers. Applications for mortgage loans fell 9.4 percent in the week ended Nov. 25 from a week earlier, according to the Mortgage Bankers Association. Applications for refinancing dipped 16 percent.

Higher mortgage rates, along with rising house prices, could eventually reduce demand for housing.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.

The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was unchanged this week at 0.5 point. The fee on 15-year loans also remained at 0.5 point.

]]>http://mynorthwest.com/477597/us-30-year-average-mortgage-rate-rises-to-4-08-percent/feed/0Home prices around Seattle may be directly linked with transithttp://mynorthwest.com/446291/home-prices-around-seattle/
http://mynorthwest.com/446291/home-prices-around-seattle/#respondFri, 04 Nov 2016 19:46:58 +0000http://mynorthwest.com/?p=446291Trying to find a home for what passes as a reasonable price in King County is proving to be more and more difficult.

The Seattle Times reportsthat of the homes sold this year, almost 12 percent have sold for more than $1 million. That is double the average rate over the past 10 years, according to the Times.

That shouldn’t come as too much of a surprise for anyone in the market for a home. Home prices around Seattle have continued to surge upward. Over the summer, reports showed prices were increasing at nearly twice the rate of the country’s 20 largest cities.

And the estates selling for more than $1 million aren’t all the traditional waterfront dream homes. The Times reports that places in Ballard, Capitol Hill, First Hill, Fremont, and West Seattle are experiencing the price spikes.

Matthew Gardner, Windermere Real Estate’s chief economist, told KIRO Radio that a large reason for this uptick in home prices has to do with transportation.

“Essentially, there’s a value to our time,” he said. “We will pay more to live closer to where we have to work. So that tells me very clearly we need to really start addressing transit and transit issues.”

That’s a valid argument, as we found out back in Marchthat — for example — Seattle has the second worst evening commute in the country. Data shows that traffic for rush-hour evening commutes was only second to Los Angeles. And Seattle tied for fourth when it comes to overall congestion.

Outside the neighborhoods listed above, the bulk of glamorous homes are still found on Mercer Island, and in Bellevue and Seattle waterfront properties, Windermere Realtor Anna Riley told the Times. Riley says transplants, international buyers, and people in the tech industry are snatching up the pricey homes.

That’s a stark contrast to Vancouver B.C., where after passing a 15 percent tax on foreign buyers in August, the city has seen home sales fall as much as 39 percent.

The Real Estate Board of Greater Vancouver says 2,233 properties were sold in October this year, CBC News reports. That’s down more than a thousands compared to the same month in 2015.

Interestingly enough, some of the transplants buying up all the expensive King County homes are from Vancouver, B.C.

This may have some worried, but Zillow’s Chief Economist Svenja Gudell previously told KIRO Radio that the area isn’t in a bubble.

“I don’t think we’re seeing a ton of speculation in the Seattle market. People actually want to live in these homes that they’re searching for,” she said. “We’re still seeing an elevated amount of cash buyers but fewer now than we did two years ago.”

Mortgage giant Freddie Mac said Thursday the average for a 30-year fixed-rate mortgage eased to 3.47 percent from 3.52 percent last week. The benchmark rate is down from 3.76 percent a year ago and close to its all-time low of 3.31 percent in November 2012.

The 15-year fixed-rate mortgage, popular with homeowners who are refinancing, ticked down to 2.78 percent from 2.79 percent.

The low rates have continued to lure buyers into the market. Data issued Thursday by the National Association of Realtors showed that more people signed contracts to buy homes in September, an increase that likely points to rising sales in the closing months of the year.

The Realtors’ seasonally-adjusted pending home sales index rose 1.5 percent last month to 110. Pending sales contracts are a barometer of future purchases. A sale is typically completed a month or two after a contract is signed.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage rose to 0.6 point from 0.5 point last week. The fee for a 15-year loan was unchanged at 0.5 point.

Homebuyers are becoming increasingly aware of the benefits of energy-efficient homes. In fact, they’re often willing to pay more for homes with “green” upgrades, says Sandra Adomatis, a specialist in green valuation with Adomatis Appraisal Service in Punta Gorda, Florida.

Just how much your home will increase in value depends on a number of factors, Adomatis says, like where you live, which upgrades you’ve made and how your home is marketed at sale time. The length of time to recoup the costs of green upgrades also depends on the energy costs in your area.

In 2014, upgraded homes in Los Angeles County saw a 6 percent increase in value, according to a study from Build It Green, a nonprofit based in Oakland, California, that works with home professionals. Upgraded homes in Washington, D.C., saw a 2 percent to 5 percent increase in 2015, according to a study Adomatis authored.

Consumer Reports suggests that upgrades like a gleaming new kitchen or a finished basement may give you more bang for your buck than energy-saving features. But if going green appeals more than adding quartz countertops, here’s where you can begin.

FIND OUT HOW MUCH ENERGY YOUR HOME USES

Getting a quick energy assessment or a more thorough energy audit can determine how much energy your home uses, as well as which upgrades would make the most sense for your home and your finances. An audit may include an energy rating, a number that indicates how energy-efficient your home is and how much it will increase if you make recommended upgrades.

The Department of Energy website lists ways to find assessors in your area. The Environmental Protection Agency’s Energy Star program offers assessor and advisory services to help you determine what to upgrade. Your utility provider may also offer energy audits.

The cost varies depending on location and who’s providing the service. Your utility company may offer an assessment for free or at a discount. A full audit may run $300 to $500 depending on the complexity, according to Don Knapp, senior marketing manager with Build It Green. You may not want to foot the bill for a full audit unless you’re planning to take advantage of it with major upgrades.

Once you know where you can improve your energy use, begin by making the changes that are most affordable and have a quicker payoff, Adomatis advises. Then consider whether the costlier ones are worth the investment. Keep in mind that a variety of tax credits and financing options are available for energy-efficient improvements.

Here are some common energy upgrades, from least expensive to most.

1. INSULATION. A 2016 Cost vs. Value report from Remodeling magazine found that the average attic air-seal and fiberglass insulation job costs $1,268, with an added value to the home at resale within a year of completion of $1,482. That amounts to a 116 percent return on investment. And according to Energy Star, homeowners can save $200 a year in heating and cooling costs by making air sealing and insulation improvements .

2. APPLIANCES. Your appliances account for about 15 percent of your home’s energy consumption, the DOE says. Certified clothes dryers can save you $245 over the life of the machine, according to Energy Star. A certified dryer from General Electric can run from $649 to $1,399.

When upgrading, look at the kilowatt-hour usage of a new appliance and compare it to your current one — a good Energy Star rating doesn’t necessarily mean it will use less energy than your existing appliance, Adomatis says.

3. HEATING AND COOLING SYSTEMS. These systems account for about 43 percent of your energy bill, according to the DOE. Replacement costs for an entire HVAC system — heating, ventilation and air conditioning — vary widely depending on equipment brands and sizing, but may run several thousand dollars. Energy Star estimates that you can save 30 percent on cooling costs by replacing your central air conditioning unit if it’s more than 12 years old.

According to Energy Star, a certified heat pump water heater has a payback time of two years and can save a four-person home $3,400 over its lifetime. A 50-gallon Geospring hybrid electric water heater from General Electric costs $1,399, plus installation.

While addressing your home’s heating and cooling systems, bear in the mind that leaky duct systems can be the biggest wasters of energy in your home, according to Charley Cormany, executive director of Efficiency First California, a nonprofit trade organization that represents energy-efficient contractors. The cost of a professional duct test typically runs $325 to $350 in California, he says.

4. WINDOWS. Replacing the windows in your home may cost $8,000 to $24,000, and could take decades to pay off, according to Consumer Reports. You can recoup some of that in resale value and energy savings. Remodeling’s Cost vs. Value report found that installing 10 vinyl replacement windows, at a cost of $14,725, can add $10,794 in resale value. Energy Star estimates that certified windows, doors and skylights can reduce your energy bill by up to 15 percent. If you’ve already tightened the shell of your home, installing a set of new windows may not be worth the cost. But the upgrade may be worth considering if you live in a colder climate.

5. SOLAR PANELS. EnergySage, a company offering an online marketplace for purchasing and installing solar panels, says the average cost of a solar panel system is $12,500. The payoff time and the amount you’ll save will vary depending on where you live. Estimated savings over a 20-year period in Philadelphia, for example, amount to $17,985, while it’s more than twice that amount in Seattle: $39,452, according to EnergySage.

LAST: LET BUYERS KNOW

When it comes time to sell, your real estate agent can help you market your home as energy efficient. Provide your agent with utility bills or your energy rating, if you received one with your audit, to include when describing the house on a multiple listing service, or MLS. There’s a growing trend in the real estate industry to make energy upgrades visible, Knapp says; energy disclosures are now a common practice in cities like Berkeley, California, and Chicago.

“If it’s reflected on the MLS, “it’s more likely to be reflected in the resale value,” Knapp said.

Bottom line: If you weigh the costs and savings carefully, going green can be worth the investment.

_____

This article was provided to The Associated Press by the personal finance website NerdWallet. Email staff writer Michael Burge: mburge@nerdwallet.com.

]]>http://mynorthwest.com/437539/how-energy-efficient-upgrades-can-increase-your-homes-value/feed/0Living longer: How to handle the mortgagehttp://mynorthwest.com/431525/living-longer-how-to-handle-the-mortgage/
http://mynorthwest.com/431525/living-longer-how-to-handle-the-mortgage/#respondFri, 21 Oct 2016 17:30:51 +0000http://mynorthwest.com/?p=431525Increased life expectancy brings many unavoidable consequences and concerns as the risk of running out of money in our lifetime has increased dramatically.

How can a mortgage help you solve the challenges of longevity?

Join host Tom Kelly and Susan McHan of Opes Advisors as they explore the role that technology, mortgage and advice will play as longevity alters everyone’s future and solving that age-old problem of house rich and cash poor on “Real Estate Today.”

]]>http://mynorthwest.com/423728/how-to-build-buy-and-finance-a-tiny-home/feed/0Can you throw good money after bad in a hot market?http://mynorthwest.com/414379/can-you-throw-good-money-after-bad-in-a-hot-market/
http://mynorthwest.com/414379/can-you-throw-good-money-after-bad-in-a-hot-market/#respondFri, 07 Oct 2016 15:02:22 +0000http://mynorthwest.com/?p=414379What does it mean to throw good money after bad in real estate? What about the idea “get in the door at any cost” now while you can?

Tom Kelly and Steve Kennedy from RE/MAX discuss the biggest mistakes potential homeowners and investors make on “Real Estate Today.”

]]>http://mynorthwest.com/414379/can-you-throw-good-money-after-bad-in-a-hot-market/feed/0The effect of crime – and celebrity – on home valueshttp://mynorthwest.com/400304/the-effect-of-crime-and-celebrity-on-home-values/
http://mynorthwest.com/400304/the-effect-of-crime-and-celebrity-on-home-values/#respondFri, 23 Sep 2016 21:35:10 +0000http://mynorthwest.com/?p=400304Randy Bell, who consulted on the JonBenet Ramsey case, is known as “Dr. Disaster” for his expertise on homes where crimes occurred.

Is there ever an uptick in value following a celebrity crime? Suicide? Who typically buys a “stigmatized” home?

Bell and Tom Kelly discuss how celebrity and crime influenced the value of some famous homes, including Kurt Cobain’s former Seattle residence, on “Real Estate Today” on 97.3 KIRO-FM.

]]>http://mynorthwest.com/400304/the-effect-of-crime-and-celebrity-on-home-values/feed/0Seattle is getting more interest from foreign investorshttp://mynorthwest.com/393518/seattle-is-getting-more-looks-from-foreign-investors/
http://mynorthwest.com/393518/seattle-is-getting-more-looks-from-foreign-investors/#respondFri, 16 Sep 2016 12:46:37 +0000http://mynorthwest.com/?p=393518Seattle property is getting more looks than its sister city to the north.

The Vancouver Sun reports that figures from Chinese website Juwai.com, which connects investors with international home sellers and real estate agents, shows property buying inquires from foreign investors shot up in August compared to August 2015. Meanwhile, inquiries in Vancouver, B.C. dropped 81 percent in August.

The cause, according to the Sun, could have to do with the recently introduced offshore investor tax.

“Realtors in Seattle and Vancouver said the data suggests growing nervousness among Chinese investors over increasing regulation of Metro Vancouver’s market,” the Sun reports.

The change has been going on for some time, with demand increasing for cities with cheaper entry prices, Dave Platter of Juwai.com told the Sun.

Though the Canadian government said in August it was too soon to conclude how the market would respond to the tax, sales of single-family homes have steadily declined and prices of luxury homes have been getting slashed.

That is a drastic difference to Seattle’s home prices, which continue to rise at an exceptional rate compared to a year ago. In June, reports showed a double-digit pace of home prices — twice the rate for the country’s 20 largest cities.

Home prices in Seattle increased by 11 percent. Portland home prices rose by 12.6 percent. Compared to the other top 20 markets in the nation — the average bump was only 5 percent — Seattle and Portland are almost unmatched. The exception is in Denver, another city where price gains continue to rise.

Of course, the foreign buyer tax in Vancouver could increase interest in other Canadian cities as well. Sotheby’s reported the Greater Toronto area had a more active market this summer than expected. That trend will most likely continue, particularly for the single-family home market, according to the firm.

Join host Tom Kelly and Joel Egan from Cargotecture as they address the boom in container homes and what consumers underestimate when buying them on “Real Estate Today.”

]]>http://mynorthwest.com/389221/container-homes-cost-benefits-and-limitations/feed/0How to market a castle and other unique homeshttp://mynorthwest.com/378473/how-to-market-a-castle-and-other-unique-homes/
http://mynorthwest.com/378473/how-to-market-a-castle-and-other-unique-homes/#respondSat, 27 Aug 2016 00:06:29 +0000http://mynorthwest.com/?p=378473Everybody knows local homes are flying off the market. Does the same hold true for a castle and other unique homes?

Join host Tom Kelly and Wes Jones as they discuss how to market unique homes on “Real Estate Today” on KIRO Radio.

]]>http://mynorthwest.com/378473/how-to-market-a-castle-and-other-unique-homes/feed/0Builders, lots and today’s markethttp://mynorthwest.com/352694/builders-lots-and-todays-market-9-a-m-sunday/
http://mynorthwest.com/352694/builders-lots-and-todays-market-9-a-m-sunday/#respondSat, 23 Jul 2016 00:17:15 +0000http://mynorthwest.com/?p=352694Does every builder offer an extended warranty? What are the builders legal obligations? Do they differ for single-family homes versus condominiums? What’s the best way to check out a builder’s track record? Is the website usually too complimentary?

Join host Tom Kelly and Steve Kennedy from RE/MAX as they discuss the local building practices on “Real Estate Today” on KIRO Radio.

]]>http://mynorthwest.com/352694/builders-lots-and-todays-market-9-a-m-sunday/feed/0Bling vs. bones: How to best evaluate a homehttp://mynorthwest.com/344519/344519/
http://mynorthwest.com/344519/344519/#respondFri, 15 Jul 2016 23:13:17 +0000http://mynorthwest.com/?p=344519Time is precious, especially when making a decision to buy one of the few homes on the market.

How do you tell if a home is solid, even though a ton of deferred maintenance is needed? How to make the most of your time before making an informed offer?

Join host Tom Kelly and Dylan Chalk, a certified home inspector and author of The Confident House Hunter for “Real Estate Today” on KIRO Radio.

]]>http://mynorthwest.com/344519/344519/feed/0Home prices soaring faster in Washington than any other statehttp://mynorthwest.com/324918/home-prices-rising-faster-in-washington-than-anywhere-else-in-us/
http://mynorthwest.com/324918/home-prices-rising-faster-in-washington-than-anywhere-else-in-us/#respondThu, 23 Jun 2016 16:03:45 +0000http://mynorthwest.com/?p=324918Home prices are rising faster in Washington than in any other state in the nation. Washington is now among the top five states for priciest homes overall, just below Hawaii and California.

The Seattle Times reports those price hikes are not unique to the Seattle area. Counties including San Juan, Stevens, Mason, Grays Harbor and Jefferson were among those with price increases of 20 percent or more during the first few months of 2016 compared with a year ago.

In San Juan, the median home price is approaching $1 million, according to The Times. On the other hand, the median price in Grays Harbor is $141,000. But that’s an increase from $88,000 four years ago. While well below King County’s median home price of $508,000 (Dec, 2015), the unemployment rate in Grays Harbor is 8.3 percent –nearly doubled the rate in King County, according to The Times.

Washington home prices are growing at a rate of nearly double the national average.

Washington home prices in April rose 10.6 percent compared with a year ago. Data firm CoreLogic says that’s the biggest jump in any state for the third month in a row.

The median cost of all sold homes across the state hit $307,658 in April, according to The Seattle Times. That’s a 37-percent increase from four years ago, according to Zillow data. It’s the first time Washington state has surpassed the price record reached in summer 2007, according to The Seattle Times.

CoreLogic’s index shows one area where home prices have slipped in the last year. Wenatchee saw a 3-percent drop, with all other metro areas experiencing a 5-percent increase in prices.

The Associated Press contributed to this report.

]]>http://mynorthwest.com/324918/home-prices-rising-faster-in-washington-than-anywhere-else-in-us/feed/0Will students’ rental coverage, if any, travel with them?http://mynorthwest.com/320237/will-students-rental-coverage-if-any-travel-with-them/
http://mynorthwest.com/320237/will-students-rental-coverage-if-any-travel-with-them/#respondFri, 17 Jun 2016 16:09:02 +0000http://mynorthwest.com/?p=320237College kids are pouring out of dorms and into homes and apartments. Will their rental coverage, if any, travel with them?

If my college roommate used my truck to move his stuff home and got in an accident, will his coverage take the heat, or mine?

If I’m heading out on vacation with my family to a hotel or rental home, do I need additional coverage?

Call 1-888-973-5476 (KIRO) with questions, comments or concerns or listen online at KIROradio.com or Mynorthwest.com and send a message to participate.

]]>http://mynorthwest.com/320237/will-students-rental-coverage-if-any-travel-with-them/feed/0Getting to your timeshare via a reverse mortgagehttp://mynorthwest.com/313804/getting-to-your-timeshare-via-a-reverse-mortgage-3/
http://mynorthwest.com/313804/getting-to-your-timeshare-via-a-reverse-mortgage-3/#respondFri, 10 Jun 2016 00:28:19 +0000http://mynorthwest.com/?p=313804What many people have now—house, lifestyle, neighborhood, friends, church, club – is exactly what they’d like to keep.

Unfortunately many older folks simply don’t know how or where to look to find the funds that would allow them to do so, that is, keep their home. The immediate need for seniors now is supplementing the income to provide the standard of living they desire.

When first introduced more than 30 years ago, the typical reverse mortgage was taken out by a single woman, often widowed, age 75, who needed funds to fix up her home so she could comfortably age in place. The purpose of reverse mortgages has changed over the years and they are now also being used to support a more well-to-do routine.

Let’s look at an example. Frank Williams, 77, and his wife, Carla, own 35 weeks of timeshares each year in five different timeshare systems. They work points, bonus time and favored status like some people work airline miles. They know how to successfully maneuver through each different organization to gain the maximum overall benefit. They are now actively filling in their timeshare schedule into calendar year 2022. That’s organization.

The Williamses took out a reverse mortgage on their principal residence in New Mexico not to buy more timeshare weeks, but to make sure they didn’t have to skimp getting to them or cut back on activities once they arrived.

“I know a lot of people are skeptical about reverse mortgages, but it worked for us,” Frank said. “Our friends want to leave everything they have to their kids, and that’s OK. But we’re not out to punish our kids by spending all of our money. Our kids are doing fine, they own their own homes, and would rather see us enjoy the rest of our lives.”

Consumers can choose how to receive and spend the money from a reverse mortgage. The options include a lump sum, fixed monthly payments (for life), a line of credit or a combination of the above. The most popular option – chosen by more than 60 percent of borrowers – is the line of credit, which allows consumers to draw on the loan proceeds at any time.

The size of the reverse mortgage depends on the age of the borrower at application, the loan type and home value. In general, the older the consumer and the more valuable the home (and the less amount owed), the larger the reverse mortgage.

A reverse mortgage can be viewed similarly to a home equity loan but without a monthly payment. Owners do not repay the loan as long as the home remains the principal residence. Income and credit rating are not considered when qualifying for the loan. There is no requirement that owners re-qualify during the term of the reverse mortgage yet property taxes and home insurance must remain current.

With a home equity loan, borrowers must make regular payments to repay the loan. These payments begin as soon as the loan is originated. To qualify for such a loan, the borrower must earn a monthly income great enough to make those payments. If payments are not made, the lender can foreclose, forcing the sale of the home.

The Williamses took out a home equity loan to do a major remodel on their home. Frank repaid most off the debt by selling some lackluster bonds then paid off the remainder with a reverse mortgage. The couple also receives $1,500 a month, tax free, for the next 20 years from funds remaining in the reverse mortgage.

“I had some assets that I didn’t really want to sell because I thought they would rebound and do quite well,” Frank said. “So, I looked at the reverse mortgage as a way of buying us some time for those assets to come back. The bonds that I did sell were not yielding anything close to the interest rate we were paying on the home equity loan, so I sold them and paid it down.”

In winter, the Williamses spend up to five consecutive weeks in the same timeshare unit on the Big Island of Hawaii. They then will hop over to Kauai for a couple of weeks and then maybe hit Palm Springs and San Diego before drifting back home to New Mexico. Northern Idaho is a favorite summer spot.

But why would they want to pay $22,000-$23,000 in annual fees for the timeshares rather than simply plunk that amount down on a mortgage for a second home?

“I have no delusions about timesharing being a good investment. They’re a lousy investment,” Frank said. “But we enjoy doing what we do, going where we go. We have no regrets and wouldn’t change anything.”

New book: Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and E-book form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

]]>http://mynorthwest.com/313804/getting-to-your-timeshare-via-a-reverse-mortgage-3/feed/0Busiest time to move right around the cornerhttp://mynorthwest.com/301984/busiest-time-to-move-right-around-the-corner/
http://mynorthwest.com/301984/busiest-time-to-move-right-around-the-corner/#respondThu, 26 May 2016 18:05:26 +0000http://mynorthwest.com/?p=301984School soon will be out and many kids will be on the move—many back to the folks’ house. While Mom and Dad might have room for some of their stuff, the kids might also find their parents have downsized and no longer have any extra storage space.

Where to look? Many storage facilities are happy to help including SpareFoot.com, a company that aggregates available local storage space so consumers don’t have to call every facility in the area to find room for their extra stuff. A company spokesman indicated that May and June were two of the busiest moving months of the year.

“In fact,” said John Egan, SpareFoot.com spokesman, “the day after Memorial Day is the busiest moving day of the entire year.”

Really. I thought families didn’t move until school got out in June.

“A lot of families do wait until late June,” Egan said, “but not all of them are leaving their schools and they choose to move right after Memorial Day. For whatever reason, that’s the day that gets more moving activity than any other day.”

When I tossed my friend’s no-move-twice rule into Egan’s court, he replied that more people would be better served by using that guideline.

“You would be surprised at the number of times people pack stuff they haven’t seen in years,” Egan said. “Sometimes, they don’t even open the box. I’ve been known to tell people to give it away if they haven’t used it in a year.”

Egan then passed along SpareFoot’s five biggest mistakes consumers make when packing and moving.

1. Packing too much stuff.

Do you really need those old boxes of baby clothes that you haven’t laid eyes on since your six-year-old was in diapers? Before you move, you need to asses your belongings. Think about giving them away to family, friends or a local family who might need what you have. Hold a garage sale to clear out some of the clutter.

2 . Failing to schedule your move well in advance.

During the summer months, good moving companies become extremely busy. Rather than waiting till the last minute, make sure your move is scheduled weeks – or, better yet, months – in advance. You don’t want to be scrambling to find a mover the day before you’re supposed to head out. Moving already is stressful enough without adding that frustration.

3. No solid cost estimate

If you hire a mover, you should be able to have someone from that company come to your home or apartment for an in-home moving estimate. If a moving company won’t do an in-home estimate, you should think about shopping around for another mover.

Don’t rely on just one quote from one mover. Contact several movers for quotes. If you really like one mover over another but your favorite company is a little pricey, try negotiating for a lower price. Always make sure to get a moving estimate in writing.

4. Hiring a shady mover.

We’ve all heard horror stories about moving scams, and perhaps maybe you’ve been the victim of a moving scam yourself. You can steer clear of a less-than-upstanding mover by doing your homework. The Better Business Bureau, Angie’s List, your state transportation regulator and the U.S. Department of Transportation – and even your relatives, friends, neighbors and colleagues – are all good sources of information about whether a moving company is on the up-and-up. Doing some homework online can save you a lot of heartache on moving day.

If you’ve done your research and still aren’t confident in the movers you’ve come across, you always can go the DIY route – just be sure you’re up for the task.

5. Actually packing ahead of time.

You’ll find very few people who’ll say that packing is fun. You can lessen the load by beginning to pack well before the movers show up at your door. Start with stuff that you won’t need right away. For instance, if you’re moving in the summer, pack up your winter clothes so that they’re out of the way.

If you get down to the wire and need help with packing, enlist friends, neighbors, relatives or colleagues to lend a hand. Make sure you’ve got plenty of food and beverages as a “thank you” for your volunteer helpers.

Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and Ebook form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

]]>http://mynorthwest.com/301984/busiest-time-to-move-right-around-the-corner/feed/0Does a second home make sense?http://mynorthwest.com/286051/does-a-second-home-make-sense/
http://mynorthwest.com/286051/does-a-second-home-make-sense/#respondSat, 07 May 2016 01:10:13 +0000http://mynorthwest.com/?p=286051The sun is out and people have begun to focus on second homes.

What are the benefits of buying a vacation home?

Does it make sense to buy now in a place you see spending your leisure years? What are the costs, how do you finance such a purchase and will the property appreciate?

Join host Tom Kelly and Jim Donahoe, a veteran second home specialist, as they discuss second homes and attractive getaway on “Real Estate Today” at 9 a.m. Sunday on 97.3 KIRO-FM.

Call 1-888-973-5476 (KIRO) with questions, comments or concerns or listen online at KIROradio.com or Mynorthwest.com and send a message to participate.

A few months ago, some friends became victims of credit-card fraud. Some scammer got access to their account and charged thousands of dollars of computer equipment on their card, via telephone, at a popular outlet in the San Francisco Bay area. They discovered the bogus charges after they had returned from a short vacation and quickly informed the bank that issued the card. Our friends also stipulated that they would not pay the charges that they did not make.

By the time the mess was sorted out, they were judged to have been late on a credit-card payment for the month that they refused to pay the phony charges. That blemish, coupled with another late charge when the bill-paying husband was out of town, sent their FICO score lower.

FICO scores (generated by Fair Isaac Corp.) typically range from a high of 850 to a low of 300. These numbers are compiled by the three national credit agencies. Most of the time, consumers who grade out above 760 get the best mortgage rates, those between 760 and 700 are in the middle and those under 630 usually pay the highest rates, if they can get financing.

To compound the problem, the husband chose to apply for a new credit card late last year when the preferred airline carrier tied to his card had a bad stretch of on-time service. He wanted to shift his frequent flier miles to another carrier, so he received another card supporting a different airline.

Really bad timing. When you apply for credit, or have lenders-creditors-companies inquire about your credit, your FICO score tends to go down. The lender for the proposed line of credit basically said “what have you guys been doing?” after the application had been filed and the new FICO score had arrived.

The good news is that many states, including Washington, have specific timelines in which creditors and reporting agencies must act on credit challenges. For example, a credit agency has 30 business days to reinvestigate any contested blemish on your credit report and then contact you with the findings. If the credit bureau cannot verify the delinquency in question, the delinquency must be removed. You must contest to delinquency to begin the 30-day clock.

The Washington law was passed in an attempt to get creditors and reporting agencies to clean up their files and speed up processing. It also requires that the credit-reporting agency contact the creditor within five days to verify the debt.

Before the law passed, my wife and I had a similar experience and spent months getting the challenge squared away. Several years ago, we had applied for a mortgage. We quickly received a credit report showing two delinquent payments to department stores. The “30-day lates” had occurred nearly seven years before then – about the time we were moving into a new home. I wrote the stores, explained what happened, and both companies removed the delinquent notices.

However, the letter from one store did not get to the credit bureau. The same delinquent notice showed up on my report the next time I considered a refinance. I dug out the original letter, called the credit agency, and demanded an explanation. Needless to say, I also called the department-store chain and spoke to a credit agent. I read her my letter over the phone and explained someone had dropped the ball. What added fuel to my fire was the long-distance call (no 800 number) and the time it took away from work.

Credit reports are powerful vehicles. Jobs, homes, reputations and future credit often depend on them. If an incorrect item appears on a credit report, it’s up to the consumer to see that it is corrected. For example, I once had two mortgages with the same lender. Both payments were once credited to one account, and I got a delinquency notice on the other. It took two letters and numerous phone calls to get the 30-day delinquency removed from my credit report.

Merely telling the agency is not enough. You should submit the explanation or proof in writing. People often don’t understand that a credit agency cannot remove something from a credit report without the authorization of the company filing the delinquency. Delinquencies include tax liens, judgments and repossessions.

(For a copy of your own credit report, contact the reporting agencies: Experian, (888) 397-3742, experian.com; Equifax, (800) 685-1111, equifax.com; and TransUnion, (312) 408-1077 transunion.com). The Fair Credit Reporting Act (FCRA) requires each of the companies to provide you with a free copy of your credit report, at your request, once every 12 months.

If you have additional problems regarding your credit report, contact the Consumer-Protection Division of the state Attorney General’s office. The telephone numbers are 1-800-551-4636 and 464-6684 (Seattle).

New book: Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and E-book form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

]]>http://mynorthwest.com/274341/low-fico-score-really-fault/feed/0Changing the tax status and moving to another propertyhttp://mynorthwest.com/260235/changing-tax-status-moving-another-property/
http://mynorthwest.com/260235/changing-tax-status-moving-another-property/#respondFri, 15 Apr 2016 16:35:15 +0000http://mynorthwest.com/?p=260235As the April 18 deadline to file federal income taxes approaches, it’s a good idea to make a list of big-picture possibilities.

(Yes, the regular tax return filing deadline is usually April 15. However, due to the Washington D.C. Emancipation Day holiday being observed on April 15 instead of April 16, tax day is on the following Monday.)

For example, if you are considering making your vacation home your permanent residence, or vice versa, you should begin planning for a change in primary residence status.

If you have been using your vacation home as a rental, consider converting it to a primary residence for a period of at least two years. That way, if you have to sell unexpectedly, you can keep up to $500,000 in gains tax free. However, use caution and keep a paper trail.

Some people who retain homes and remain active in business or community affairs in their original states are finding that state tax officials are challenging their change of personal residence. Officials contend that these folks are still residents for income or estate tax purposes because they have not abandoned their original personal residences.

When intent conflicts with facts and circumstances, determining which residence is actually an individual’s primary residence can be confusing. The determination is usually based on the individual’s objective and facts such as:

• Registering to vote
• Having bank accounts and securities accounts
• Payment of local taxes
• Time spent in state of residency
• Continuous car registration and driver’s license
• Furnishing a primary residence more extensively
• Using state of residence address in registrations and application

If you do move to a different state, know that some states impose a tax on the fair market value sale of intangible personal property owned or controlled by their residents. The intangible personal property that is subject to tax generally includes:

• Stock options
• Commodity futures and contracts
• Notes, bonds, and other obligations for payment of money
• Stocks and shares of incorporated or unincorporated companies, business trusts, and mutual funds.

States have numerous statutory exemptions from the intangible tax for particular assets such as money and cash equivalents, securities issued by the U.S. government, and interests in partnerships that are not publicly traded.
Persons who relocate to states that have enacted sales and use tax laws might be liable for use tax on their purchases. For example, if you purchase goods from an out-of-state vendor that are shipped into your new home state, you might be responsible for paying use tax on those goods.

Some states have become more aggressive in enforcing their sales and use tax laws. They have gone to great lengths––examining U.S. Customs reports, personal checkbooks, and credit card statements and sharing that information with other states. Some states have enacted strict filing responsibilities and record retention statutes with respect to individuals who are subject to sales and use tax laws.

According to Rob Keasal, residential tax specialist in the accounting firm of Peterson Sullivan, P.C., taxpayers often already own the property and would not have to pay a use tax for changing residency and bringing personal property to another state.

“In some states, when a rental is sold with tangible personal property, like a stove and refrigerator, it is considered incidental to the real property and no sales or use tax is paid when the property changes hands,’’ Keasal said. “However, many states are getting tougher. I’ve seen at least one state that even has a use-tax reminder on its income tax return.’’

Tax planners say you can eliminate your intangible tax liability if you structure your planning strategies correctly and implement them on a timely basis. Consider timing your move to avoid the initial year’s tax or by restructuring the ownership of tangible assets.

You will also want to consider the state income tax consequences of a change of residence. If you have bonuses coming, stocks options, or other deferred compensation (as is the case for example, with many professional athletes), carefully plan how you receive these funds relative to your move to avoid excessive state income taxes.

If you plan to move, especially to another state, take time to do the research on the tax ramifications before you get there.

Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and Ebook form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.